Sharenet Sites 
Sharenet Sites
TREMATON CAPITAL INVESTMENTS LTD - REVIEWED INTERIM REPORT FOR THE SIX MONTHS ENDED28 FEBRUARY 2003 AND FURTHER CAUTIONARY ANNOUNCEMENT TREMATON CAPITAL INVESTMENTS LTD (Incorporated in the Republic of South Africa) (Registration number 1997/008691/06) Share Code : TMT Isin : ZAE000013991 REVIEWED INTERIM REPORT FOR THE SIX MONTHS ENDED 28 FEBRUARY 2003 AND FURTHER CAUTIONARY ANNOUNCEMENT Group income statement Six (Audited) months to Six Twelve
28 months to months to February 28 31 August 2003 February 2002 R000 2002 R000
R000 Net interest (paid)/received (330) (75) 817 Net management and statutory (1 223) (1 036) (2 022) expenses Loss from operations (1 553) (1 111) (1 205) Investment valuation adjustments - Fair value movements, losses and (15 769) 3 298 (59 602) write-downs Profit/(loss) before taxation (17 323) 2 187 (60 807) Taxation - - - Profit/(loss) after taxation (17 323) 2 187 (60 807) Loss from associates (3 011) (1 289) (1 252) Income/(loss) for the period (20 333) 898 (62 059) Headline loss per share (cents) (19,3) 0,8 (52,0) Earnings/(loss) per share (cents) (19,3) 0,8 (56,8) Weighted average number of shares in 105 168 109 200 109 200 issue (000) Reconciliation between income/(loss) and headline earnings/(loss) Income/(loss) attributable to (20 333) 898 (62 059) shareholders Profit on disposal of investments - - 5 252 Headline earnings/(loss) (20 333) 898 (56 807) attributable to shareholders Group balance sheet 28 28 31 August February February 2002
2003 2002 R000 R000 R000 ASSETS Non-current assets Property, plant and equipment - 713 586 Investments in associates - 6 124 3 859 Investments 7 485 103 327 21 713 Current assets 349 1 870 1 158 Accounts receivable 349 378 794 Proceeds on sale of investments - 1 492 - Cash resources and short term - - 364 loans TOTAL ASSETS 7 834 112 034 27 316 EQUITY AND LIABILITIES Ordinary shareholders" interest 2 943 94 297 23 276 Non-current liabilities Convertible debentures - 10 562 - Current liabilities 4 891 7 175 4 040 Provisions and accounts payable 32 3 152 595 Interest bearing debt 4 859 4 023 3 445 TOTAL EQUITY AND LIABILITIES 7 834 112 034 27 316 Net asset value per share (cents) 2,8 86 22 Fully diluted net asset value per 2,8 91 22 share (cents) 105 168 109 200 105 168 Number of shares in issue (`000) 105 168 115 210 105 168 Diluted number of shares in issue (`000) Cash flow statements 28 28 31 February February August 2003 2002 2002 R000 R000 R000
Cash outflows from operating (1 778) (660) (4 019) activities Cash outflows from investing - (1 181) - activities Cash flows from financing 1 414 - 6 219 activities Net movement in cash and cash 364 (1 841) 2 200 equivalents Statement of changes in equity Retained Share Share income/ Capital Premium (Accumulated Total
R"000 R"000 Loss) R"000 R"000 Balance at 1 September 2001 1 092 171 235 (78 928) 93 399 Net income for the period - - 898 898 Balance at 28 February 2002 1 092 171 235 (78 030) 94 297 Shares cancelled (40) (8 024) (8 064) Net loss for the period (62 957) (62 957) Balance at 31 August 2002 1 052 163 211 (140 987) 23 276 Net loss for the period (20 333) (20 333) Balance at 28 February 2003 1 052 163 211 (161 320) 2 943 REVIEW OF RESULTS During the six month period under review, Trematon"s net asset value per share decreased from 22 cents to 2,8 cents mainly as a result of the fall in the share price of Intec Telecoms PLC ("Intec"). The headline loss per share for the period of 19,3 cents compares with the headline profit of 0,8 cents for the corresponding period in 2002 and the headline loss of 52 cents for the year ended 31 August 2002. During February the Group disposed of its investments, other than those in Mican Ltd ("Mican") and Gracefield Investments (Pty) Ltd ("Gracefield"), to a consortium comprising an investment bank, non executive director Mr R E Sherrell and Trematon executive management, including CEO Mr R B McElligott. The purchase consideration was nominal but exceeded the aggregate carrying value of the investments. The effect of this transaction is that Trematon will no longer be required to continue funding the entities disposed of and will substantially reduce its operating costs by virtue of no longer having any full time executive management. This transaction was approved by a disinterested quorum of directors. Trematon"s only investments now comprise those in Mican and Gracefield. Mican"s most significant asset is its shareholding in Intec, which thus indirectly is also Trematon"s most significant asset. The market price of Intec shares fell from 22p at 31 August 2002 to 17,5p at 28 February. Intec improved its operating performance for the six month period ended 31 March 2003 despite a background of difficult and competitive market conditions. Its EBITDA earnings for the period grew by 155% to GBP1,928,000 from GBP755 000 in 2002. Intec"s adjusted earnings per share for the period was 0.5p (2002 : 0,13p loss). The value of the Group"s other IT investments namely its attributable investments in Iocore OY (Finland), Adaptive Systems (Denmark, Norway and Sweden) and Iocore SA (South Africa) and Iocore Australia, held by Mican and Gracefield also continue to be negatively affected by market conditions and sentiment. The R15,8m investment valuation adjustment resulted from the reduction in the Intec share price and the value of the Group"s other IT related investments. PROSPECTS Trematon"s operating costs have been significantly reduced. The future value of the company"s investments is dependent mainly on the price of Intec shares as well as the outcome of the negotiations referred to below in the further cautionary announcement. ACCOUNTING POLICIES The financial statements of the Group comply with South African Statements of Generally Accepted Accounting Practice and are consistent with those applied in the previous financial year, except for the effects of Circular 07/02 "Headline Earnings" issued in December 2002 in terms of which the investment valuation adjustment has now been included in headline earnings. Comparative figures have been restated accordingly. REVIEW BY AUDITORS The company"s auditors, KPMG Inc, have reviewed these results. Their review opinion is available for inspection at the company"s registered office. APPROVAL BY DIRECTORS The Directors of Trematon have approved the interim report for the six month period ended 28 February 2003. FURTHER CAUTIONARY ANNOUNCEMENT Further to the cautionary announcement dated 26 November 2002 and subsequent announcements, shareholders are advised that negotiations are still in process regarding a restructure of the funding requirements of Mican and Gracefield as well as in regard to Trematon"s own funding requirements. As Trematon is a minority shareholder in both Mican and Gracefield it does not have direct control over those companies" negotiations. The outcome of the negotiations referred to may have a material effect on the price of the company"s securities. Accordingly, shareholders are advised to continue exercising caution when dealing in the company"s securities until a full announcement is made. By order of the board CW GARVIE SECRETARY 30 May 2003 Registered office Postal address The Manor House PO Box 712 14 Nuttall Gardens Durban Morningside 4000 4001 Telephone: 031-3039667 Fax: 031-3121989 Directors: NA Labuschagne (Chairman), RB McElligott (CEO), P Ditz, M Farrer, MG Meehan, AJF Mundell, RE Sherrell Sponsor Merrill Lynch South Africa (Pty) Ltd Transfer Secretaries : Computershare Investor Services Ltd, 17 Marshall Street, Johannesburg Date: 30/05/2003 07:00:11 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
